Leadership Case study

Submitted to:Prof. Sapna Malhotra

Michael Dell – The Man Behind Dell

Group 4: MembersAmod 06

Anand 08

Azim 23

FalakJahan 40

Himanshu 56

Irfan 61

Background of Dell

1984 : Incorporated

1985: 84: 85 Sales of $6million

1987 : Came up with a subsidiary in UK

1989 : Achieved sales of $256mn

1990 : Entered retail business & recorded sales of $546mn

1991 : Reported a growth of 109%, but 64% dip in profits

1992 : Sales of $2 billion

1993 : 93-94 recorded a loss of $36mn

1996 : Launched website for direct selling

1998 : Established manufacturing units in the US & Europe

2001 : Emerged as one of the Top 5 computer firms

Michael Dell – The Entrepreneur

Age 12: Started auction business

Age16: He started selling newspaper subscriptions

Being a computer geek, understood the functioning of his new Apple computer

Soon he could ‘enhance’ PCs & sold them at lower costs

In January 1984 he registered ‘PC’s Limited’ & incorporated DELL in May

Dell as Entrepreneur

Direct model

Business through internet

Direct Model

Face to Face

interaction

Telephone Internet

ADVANTAGES: Reduce unnecessary distribution overheads Helped to reduce inventory cost Input from customers Customer participation

www.dell.com Enabled

customers to research & configure prices

Michael Dell – The leader

Participative type of leader

He believes business is all about building teams & building talent

Motivates people to work better

Believes Planning is nothing without Execution

Takes part in the recruitment process

Job segmentation

360° Performance appraisals

Believed in ‘under promise & over deliver’

Three golden rules – Disdain inventory, Listen to the customer & never sell indirect

Sluggish revenue and earnings

Dimension PCs and notebooks through Wal-Mart’s Sam’s Club.

Current strategy

Future strategies

Dell showing up in a lot more retail locations – not only in the U.S. but also in major countries around the world over the next several quarters.

Dell also plans to extend its international retail strategy by opening its first retail store in Russia.

!Thank You